A Governance Contract is a smart contract that establishes the rules and processes for decision-making within a blockchain project. It typically outlines how stakeholders can propose changes, vote on proposals, and implement adjustments to the protocol.These contracts ensure that all participants have a say in the direction of the project, promoting decentralization and community involvement. They help prevent unilateral decisions by developers or centralized entities, allowing a more democratic approach to governance.Governance Contracts can include mechanisms for voting, such as weighted voting based on stake or time held. They may also specify quorum requirements, which dictate the minimum number of votes needed for a decision to be valid.By codifying governance rules on the blockchain, these contracts enhance transparency and trust among participants, as all actions and proposals can be auditable and verifiable by anyone. This fosters a sense of ownership and responsibility among users, encouraging active engagement in the ecosystem’s evolution.